The second year of this diagnostic program was one of growth and clinical research. The serology unit has been expanded to include testing for LDH virus, SDA virus, Mycoplasma pulmonis and Encephalitozoon cuniculi. The New York Blood Center entered into an agreement with the Rockefeller University Laboratory Animal Diagnostic Unit. The latter will provide a diagnostic and health care program for the Blood Center at a fixed annual cost. James Walberg, D.V.M., joined the diagnostic unit as the new resident in laboratory animal pathology. This program was jointly sponsored by the Animal Medical Center and the Rockefeller University as a direct outgrowth of the diagnostic program. The three consortium members in conjunction with the animal facility at Sloan Kettering Institute initiated a monthly laboratory animal histopathology conference. This conference is now regularly attended by laboratory animal veterinarians from four New York area hospitals in addition to consortium members. Three case reports generated through the diagnostic laboratory are now in preparation for publication. The report involving the presence of Demodex sp., associated with laboratory rats, is the first report of this parasite in the United States. Two programs of improved animal health were developed based on data generated through the diagnostic laboratory. A developing SPF mouse colony and rabbit population will be monitored through the diagnostic laboratory.